Company presentation. Third quarter October Norway s fastest growing region is our home market

Transcription

1 Company presentation Third quarter October Norway s fastest growing region is our home market

2 Summary

3 Good profitability and continued strong lending growth Summary third quarter 2018 High activity levels in all business areas Strong income and lending growth Increased focus in real estate brokerage and accounting services Good growth in numbers of retail and corporate customers Good cost control and operating cost development in line with ambitions Still low loan losses Marginally lower solidity due to strong lending growth Signed agreement of merger between SpareBank 1 Skadeforsikring and DNB Forsikring awaiting MoF approval 3

4 The performance in third quarter is in line with ambitions Financial targets 2018 and performance as of 3Q-2018 Profitability Return on equity at least 10 % 11.1 % Dividends 50 % pay-out ratio after tax* 50 % Solidity CET 1 at 16 % 15.9 % Costs 5 % cost reduction** -1.3 % 4 * Profit after tax before minority interests ** Nominal costs pro-forma parent bank compared with 2017 (accumulated)

5 The bank and the market area

6 SpareBank 1 Østlandet at a glance Norway's fourth largest savings bank with a broad and diversified customer base History from 1845 known as Sparebanken Hedmark ("SBHE") until 1 April Norway's fourth largest savings bank * with total adjusted assets (incl. covered bonds) of NOK 161 billion. Operations in Hedmark, Oppland, Oslo and Akershus a market with more than 1.7 million inhabitants. Head office in Hamar, 38 branches and 1,146 FTEs. Approximately 332,000 customers with a retail lending share of 74 %. Diversified product offerings traditional banking, leasing, accounting and real estate brokerage services. Part of the SpareBank 1 Alliance and owns 12.4 % of SpareBank 1 Gruppen AS. 6 Sources: Annual/interim reports, SpareBank 1 Gruppen Comments (*): Total assets on own balance sheet, plus mortgages transferred to SB1 Boligkreditt and SB1 Næringskreditt

7 High economic activity in our market area (1) Increasing productivity and low unemployment 4 Growth in production, q/q and forecast for 6 months (per cent) 4 Registered unemployment rate, NAV (per cent) Trøndelag Inland Region* Rogaland/Hordaland Norway Capital Region** -3 Rogaland Hordaland Trøndelag Norway Inland Region* Oslo/Akershus Source 1: Norges Bank Regional Network 03/18 (*) Includes Hedmark and Oppland (* *) Includes Oslo, Akershus, Østfold and Buskerud Source 2: Statistics Norway, NAV, Thompson Reuters Datastream

8 High economic activity in our market area (2) Investment leveling out on higher profitability 2.50 Expected change in investments next 12 months (per cent) 2.00 Change in profitability past 3 months compared to last year (per cent) (0.50) (0.50) (1.00) Inland Region* Capital Region** Rogaland/Hordaland Trøndelag Norway (1.00) Inland Region* Capital Region** Rogaland/Hordaland Trøndelag Norway 8 Source 1: Norges Bank Regional Network 03/18 (*) Includes Hedmark and Oppland (* *) Includes Oslo, Akershus, Østfold and Buskerud Source 2: Statistics Norway, NAV, Thompson Reuters Datastream

9 Housing prices leveling out with high construction activity House price developments for relevant areas compared with Norway Housing prices by area, 12-month growth (per cent) House prices, indexed** 30.0% 25.0% 20.0% 15.0% 10.0% SEPTEMBER % Nominal -1.1 %/seasonally adjusted +0.1 % Record high 25.0% sales activity but also high supply Shortest time to sale in Hamar/Stange (20 days) 20.0% 12-month growth: +2.7 % Oslo 15.0% +4.1 % Inland Region* +2.2 % 10.0% % 0.0% 5.0% 0.0% % -5.0% % -10.0% % -15.0% Stavanger Bergen Trondheim Norway Oslo Romerike Inland Region* Stavanger Bergen Trondheim Norway Oslo Romerike Inland Region* 9 Source: Eiendom Norge Housing Prices September 2018 (*) Includes: Oppland and Hedmark (**)Index 31 December 2014 = 100

10 A market area with long term growth potential Considerable population growth in the Greater Capital Area Population projection Population projection, municipalities ,000,000 1,750,000 1,500, % (0.8% yearly) Oppland Hedmark 1,250,000 1,000,000 Oslo 750, , ,000 Akershus 0 10 Source: Statistics Norway: Population Forecast, Base scenario

11 The growth is expected in financially interesting demographic groups Population forecast per county and demographics , , , ,000 Oslo Akershus Hedmark Oppland 759, , , ,000 Expected population growth 2030: Norway: 8 % Oslo: 13 % Akershus: 13 % Hedmark: 6 % Oppland: 5 % Total population in the market area: 2018: 1.7 million 2030: 1.9 million 14 % 21 % 7 % 13 % % 12 % 12 % 11 % 8 % 17 % 19 % % 11 % 12 % 9 % 12 % Age Expected demographic growth 2030: 0-17 years: 2 % years: 5 % years: 3 % years: 17 % years: 1 % years: 9 % years: 25 % 67+ years: 35 % 11 Source: Statistics Norway: Population Forecast, Base scenario (counties)

12 # in thousands Solid customer growth after the merger Numbers of customers in parent bank Personal customers Total number of customers Corporate customers - Right axis In connection with the technical merger in October 2017, standardization of the product and customer definitions were made. After the technical merger, the customer growth has been solid A total of 16,400 customers, equivalent to 5.2 % 800 corporate customers, equivalent to 3.3 % 15,600 retail customers, equivalent to 5.3 % After the Bank 1 OA acquisition in June 2016, the numbers of customers has increased from (estimated) 290,000 to 332,000, equivalent to 14.5 % 12 Source: SpareBank 1 Østlandet «Customers» are defined as customers with account activity

13 1Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q 2018 Value creation above national average Industry index (quarterly) based on gross product per county Oslo Hedmark Akershus Oppland Norway 40 % of Norway s mainland GDP is created in our market area Growth in value creation per county: Norway +8.2 % Oslo: % Hedmark: +9.9 % Akershus: +9.0 % Oppland: +8.6 % Source: Statistics Norway. National accounts based on gross product in 2016 prices. Quarterly numbers estimated. 1Q 2014 = 100

14 Financial accounts 3Q-2018

15 Financial results for the third quarter of 2018 (Last year's figures in brackets) Increased profitability Profit after tax in 3Q 18 isolated at NOK 362 million (NOK 377 million). Profit after tax as of 3Q 18 accumulated NOK 1,092 million (NOK 926 million). Higher return on equity Solid capitalization ROE in 3Q 18 at 10.8 % (12.0 %). ROE as of 3Q 18 accumulated 11.1 % (10.1 %) CET 1 ratio 15.9 % (16.9 %). Leverage ratio at 7.2 % (7.3 %). High lending growth Lending growth of 8.9 % (incl. the covered bond companies) last 12 months (7.9 %). Lending growth of 2.0 % from 2Q 18 Strengthened deposit growth Deposit growth of 7.6 % in the last 12 months (5.1 %). Low impairments Impairments on loans and guarantees of NOK 12 million in 3Q 18 isolated Impairments on loans and guarantees of NOK 24 million as of 3Q 18 accumulated 15 *Annualised loss rate

16 Income statement 3Q 2018 Group Net interest income 1,530 1,454 1,956 Net commission income ,095 Other income Total operating expenses 1,375 1,348 1,898 Result bank operation before losses 1,128 1,056 1,321 Impairment losses on loans and guarantees Result bank operation after losses 1,104 1,063 1,341 Dividends Net profit from ownership interest Net income from financial assets/liabilities Profit/loss before tax 1,388 1,197 1,618 Tax charge Profit/loss after tax 1, ,263 Return on equity capital after tax 11.1 % 10.1 % 10.2 % Total operating costs in relation to total income 49.3 % 53.1 % 54.3 % Losses on loans as a percentage of gross loans 0.03 % % % 16

17 Special items 3Q 2018 The insurance merger Description and effects Merger SpareBank 1 Forsikring and DNB Forsikring* The SpareBank 1 Group (SB1G) and DNB agreed 24 September 2018 on the merger of SpareBank 1 Forsikring and DNB Forsikring Ownership ratio will be 65/35 between SB1G and DNB DNB with call option to increase ownership to 40 % The merged business is valued at NOK billion. The increased ownership of 15 % for DNB equals NOK 2.96 billion. The merger increases SB1G s equity on group level with NOK 6.9 billion SpareBank 1 Østlandet s (SB1Ø) share is approximately NOK 528 million The CET 1 is more or less unchanged The transaction gives SB1G a tax-free gain of approx. NOK 2.65 billion SB1Ø s share of a possible dividend is NOK 329 million The estimated effect on SB1Ø s CET 1 is 0.4 percentage points The dividend is conditioned by The capital situation and decisions from SB1G take place in 2Q 2019 at the earliest Proposed changed dividend regulation from the NFSA, to prevent dividend based on interim reports. If concluded dividend from SB1G will take place in 2020 at the earliest and from the owner banks in *Complete stock exchange announcement ->

18 Key financials quarterly (1) Pre-tax profit (NOK million) Net interes income and and commision fees from covered bond companies (NOK million) Q-17 4Q-17 1Q-18 2Q-18 3Q-18 Impairments on loans and guarantees (NOK million) Q-17 4Q-17 1Q-18 2Q-18 3Q-18 Total operating costs (NOK million) Q-17 4Q-17 1Q-18 2Q-18 3Q-18 3Q-17 4Q-17 1Q-18 2Q-18 3Q-18 18

19 Key financials quarterly (2) Return on equity 12.0 % 10.4 % 9.9 % 12.9 % 10.8 % CET 1 ratio 16.9 % 16.8 % 16.2 % 16.1 % 15.9 % 3Q-17 4Q-17 1Q-18 2Q-18 3Q-18 3Q-17 4Q-17 1Q-18 2Q-18 3Q-18 Lending growth (including loans transferred to covered bond companies) last 12 months 8.8 % 8.9 % 8.9 % 8.4 % 7.9 % Deposit growth last 12 months 5.1 % 5.3 % 4.6 % 6.0 % 7.6 % 3Q-17 4Q-17 1Q-18 2Q-18 3Q-18 3Q-17 4Q-17 1Q-18 2Q-18 3Q-18 19

20 Profit contributions from subsidiaries 3Q 2018 (3Q 2017) SpareBank 1 Finans Østlandet - Profit before tax NOK million (NOK million). - Strong growth, cost control and increasing profitability. - Increased focus on innovation and business development. EiendomsMegler 1 Hedmark - Profit before tax NOK 16.6 million (NOK 20.1 million). - Solid market position, expanded project and CRE brokerage increase market share. - High activity level, but increased cost from termination of IT contract and new recruitment. EiendomsMegler 1 Oslo Akershus - Profit before tax NOK 5.3 million (NOK -1.0 million). - Restructuring completed, higher activity and cross-selling. - Accounting effects from termination of an IT contract and new recruitment. SpareBank 1 Østlandet VIT AS (SpareBank 1 Regnskapshuset AS og TheVIT AS) - Profit before tax NOK -3.7 million (NOK 1.2 million*). - The merged company is well positioned with value adding offerings. - Strengthened presence in Greater Oslo and continued digitalization of key processes. 20 * Last year s figures is SpareBank 1 Regnskapshuset Østlandet AS

21 Contribution from joint ventures 3Q 2018 (3Q 2017) SpareBank 1 Gruppen - Profit before tax NOK 1,244 million (NOK 1,437 million) - Ownership 12.4 % SpareBank 1 Boligkreditt AS - Profit before tax NOK 52.3 million (NOK million) - Ownership 21.1 % SpareBank 1 Næringskreditt - Profit before tax NOK 46.7 million (NOK 66.7 million) - Ownership 12.4 % SpareBank 1 Kredittkort - Profit before tax NOK million (NOK 77.7 million) - Ownership 20.5 % 21

22 Net interest income Net interest income incl. commissions from covered bond companies % % 1.86% 1.81% 1.78% 1.77% 1.90% 1.80% Higher NII last quarter due to strong lending growth % 1.60% Flat NII in per cent of average assets Q-17 4Q-17 1Q-18 2Q-18 3Q-18 Net interest income and commission fees from covered bond companies (MNOK) Commission fees from covered bond companies Net interest income Net interest income in % of average of average total assets (accumultated) 1.50% 1.40% 1.30% 1.20% 1.10% 1.00% Commission fees from covered bond companies reduced on increased funding costs Announced interest rate increase with up to 0.25 % on lending and deposits 21 September. The increase is effective from 11 October for CM and 8 November for RM. 22

23 Continued strong lending growth Lending volume (Group, NOK billion) Q-17 4Q-17 1Q-18 2Q-18 3Q-18 Loans transferred to covered bond companies Gross loans to customers (own balance sheet) Total lending in the Group, including loans transferred to covered bond companies, increased last quarter with NOK 2.2 bn This is equivalent to a 2.0 % growth last quarter Group lending growth in the last 12 months was 8.9 % (7.9 %) Lending growth retail 8.7 % Lending growth corporates 9.3 % Growth in loans including loans transferred to covered bond companies in the last 12 months 23

24 Lending margins Retail and corporate markets (parent bank) 2.76% 2.68% 2.49% 2.53% 2.53% A continued stabilizing of lending margins during 3Q 18, but shows a marginal increase in RM. 1.92% 1.93% 1.76% 1.59% 1.62% 3Q-17 4Q-17 1Q-18 2Q-18 3Q-18 Marginal increase in corporate lending margins. This is a result of targeted repricing of individual products and customer groups, and focused pricing of new business. Interest rate increase with effect from 11 October in CM and 8 November in RM. 24 Lending margin RM, incl. covered bond companies Lending margin CM, incl. covered bond companies

25 Loan book dominated by retail and SME lending Lending to customers per sector (% and NOK millions) Primary industries 4,425 Wholesale and retail trade 1,290 Commercial services 4,497 Other 5,524 Corporate lending 26% Retail lending 74% Building and construction 4,733 Transferred to Næringskreditt 1,479 Real estate 13,874 Transferred to Boligkreditt 38,415 Private customers 63,917 25

26 The concentration risk is low Retail and corporate loans by size (% share)* Retail market Corporate market 39.0% 26.0% 34.0% 22.3% 18.8% 9.6% 13.2% 12.0% 10.6% 10.4% 4.2% <1 M M M 5-10 M >10 M <5 M 5-10 M M M M > 200 M 26 * Including loans transferred to the covered bond companies

27 Building and constructions Primary industries Commercial services Other industry Hotel and restaurants Real estate Power and water supply Wholesale and retail trade Transport and communication Paper and pulp industries Public sector Growth in NOK million Well diversified growth in corporate loan portfolio last quarter From 2Q 2018 to 3Q

28 Building and constructions Paper and pulp industries Commercial services Public sector Other industry Transport and communication Hotel and restaurants Power and water supply Wholesale and retail trade Other Primary industries Real estate Growth in NOK million Well diversified corporate lending growth last year From 3Q 2017to 3Q ,908 1,654 28

29 Utilisation of flexibility quota in mortgages Daily follow-up ensures optimal utilisation of the permitted quota Utilisation of flexibility quota in 3Q-2018: City of Oslo 7.1 % (8 % quota) Other areas 4.9 % (10 % quota) The mortgage regulation* constrains the lending: Debt servicing capacity Stress: 5 % interest rate increase Maximum loan to value (LTV) 85 % 75 % legal limit in the covered pool Gearing Total debt must not exceed five times gross annual income Installment payment Exceptions are permitted within 10 % (8 % for Oslo) of the total granted volume each quarter The so called Flexibility quota 29 * "Regulation on the requirements for new lending with collateral in housing"

30 High quality credit process leads to low and stable LTV Percentage of granted mortgages and average LTV per county Percentage of granted volume Average LTV at the time of grant 66% 62% 60% 59% 59% 69% 66% 61% 61% 61% 70% 66% 61% 61% 61% 78% 73% 66% 69% 69% 67% 70% 67% 63% 64% 33% 31% 29% 28% 27% 29% 30% 32% 32% 30% 27% 30% 30% 30% 33% 3% 4% 4% 4% 4% 7% 6% 6% 6% 7% Q18 2Q18 3Q Q18 2Q18 3Q Q18 2Q18 3Q Q18 2Q18 3Q Q18 2Q18 3Q18 Oslo Akershus Hedmark Oppland Others 30

31 Low LTV in the residential mortgage lending Exposure per LTV bucket in the residential mortgage portfolio 100% 95.0 % 80% 60% 40% 20% 0% 4.0 % 0.5 % 0.5 % Below 70% LTV 70-85% LTV % LTV Over 100% LTV 31

32 Satisfactory deposit coverage and higher deposit growth Deposit volume, Group (NOK billion) Deposit growth last 12 months 7.6 % (5.1 %) Deposit growth - retail 7.5 % Deposit growth - corporates 7.9 % Deposit coverage ratio 71.5 % Deposit coverage ratio - including mortgages transferred to the covered bond companies 50.9 % 3Q-17 4Q-17 1Q-18 2Q-18 3Q *) Includes 100% ownership of Bank 1 Oslo Akershus

33 Deposit margins Retail market and corporate market (parent bank)* 0.30% 0.26% Marginally reduced deposit margins in last quarter 0.23% 0.22% 0.20% The margins are stabilizing after two quarters with strong growth. 0.09% 0.11% 0.08% Interest rate increase with effect from 11 October in CM and 8 November in RM % -0.04% 3Q-17 4Q-17 1Q-18 2Q-18 3Q-18 Deposit margin RM Deposit margin CM 33 * Included transferred to covered bond companies

34 Increased income in subsidiaries Net commissions and other income (NOK millions) Other income Commission income from credit cards Income from accounting services Income from real estate brokerage Mutual fund and insurance commisions Payment transmission Total Commissions and other operating income was reduced with 5.1 % from last quarter. The changes was based on seasonally lower activity in July for real estate brokerage. Compared to last year the commission income increased with 3.7 % Q-17 4Q-17 1Q-18 2Q-18 3Q

35 Group operating costs Operating costs per quarter (NOK millions) Other operating expenses Depreciation Admin. and other operating costs Social security Pensions Payrolls The operating costs have increased with 5.6 % compared to last year. Personnel expenses have increased due to higher activity level and staffing in the subsidiaries. Write-downs of an IT project in the EM1 alliance amounted to NOK 5 million in 2Q Total 3Q-17 4Q-17 1Q-18 2Q-18 3Q

36 Increased staffing in subsidiaries Headcount (FTE) 1,102 1,109 1,111 1,126 1,146 Stable level of staffing in the Parent Bank after the merger downsizing has been completed Increased staffing in the subsidiaries due to higher ambitions and activity levels in real estate brokerage and accounting services Q-17 4Q-17 1Q-18 2Q-18 3Q-18 Parent bank Subsidiaries # Fulltime equivalents (FTE) 36

37 Expenses Parent Bank (adjusted*) Operating Costs per quarter (NOK million) The operating costs as of 3Q 2018 were NOK 12 million lower than in the same period in This is equivalent to a 1.3 % cost reduction compared with last year The ambition of a 5 % cost reduction in absolute terms for the pro-forma parent for the year 2018 compared with 2017 is maintained. 3Q-17 4Q-17 1Q-18 2Q-18 3Q-18 Forecasts for 4Q 2018 indicates that the bank is in line to reach its ambition of 5 % cost reduction. 37 * The analysis takes into account that the former Bank 1 Oslo Akershus is consolidated from 2Q 17. Adjusted is calculated as if the merger had effect for the whole year of 2017.

38 The contribution from financial items has increased Net income from financial assets and liabilities (NOK millions) Net income from financial assets and liabilities has increased with NOK 23 million. See previous slides Issued debt securities were in 2017 generally assessed at fair value and showed, mainly due to lower credit spreads, a loss of NOK 78 million. Issued debt securities are after 1 January 2018 generally assessed at amortised costs (reclassification due to transfer to IFRS 9). The remaining improvement in net change on securities issues compared with last year is marginally positive and counts for NOK 9 million. The accumulated contribution is NOK 87 million. Net income from financial assets and liabilities Dividends from other than Group companies Net profit from ownership interests Net change in value on securities issued including hedge derivatives Net income from financial assets and liabilities excl. net change in value on securities issued including hedge derivatives Net income from financial assets and liabilities Net income from other posts has increased with NOK 38 million. Main contribution is a one-off from the Vipps/BID/BAX-merger (NOK 59 million), bond investments (NOK 54 million), and positive contribution from ownership interests (NOK 23 million). 38

39 Still low impairments on loans and guarantees Impairments on loans and guarantees (NOK million) Q Impairments on loans and guarantees was NOK 24 million, equal to 0.02 % of gross loans Parent bank NOK 12 million SB1 Finans Østlandet NOK 12 million Impairments on loans and guarantees was NOK 12 million in the third quarter Parent bank NOK 4 million SB1 Finans Østlandet NOK 8 million -13 3Q-17 4Q-17 1Q-18 2Q-18 3Q * Annualised loss rate.

40 Low levels of problem loans Non-performing and other doubtful commitments* % % 1.12% % 0.61% 0.59% 0.42% 0.41% % 0.36% Q-2018 Gross doubtful commitments (not in default) 1.60% 1.40% 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% The proportion of problem loans decreases further Gross defaulted commitments for more than 90 days Gross doubtful (not in default) and gross defaulted commitments as % of gross loans Gross doubtful and gross defaulted commitments as % of gross loans incl. loans transferred to covered bond companies 40 *) NOK million and percentage of total lending

41 Low impairments and low net exposure in Stage 3 Specification of impairments and net exposure (NOK million) Impairments per segment - quarterly Maximum exposure (on and off-balance sheet items), net of accumulated impairments 3Q18 2Q-18 1Q-18 Personal customers Corporate customers SB 1 Finans Østlandet Total % 94.5 % 93.3 % Stage 1 Initial recognition and no significant deterioration of credit quality 12-month expected credit losses Stage 2 Significant deterioration of credit quality Lifetime expected credit losses Stage 3 Significant deterioration of credit quality and objective credit loss Lifetime expected credit losses 5.0 % 5.2 % 6.3 % 0.4 % 0.3 % 0.4 % Stage 1 Stage 2 Stage 3 1Q-18 2Q-18 3Q-18 41

42 CET 1 close to target Core equity tier 1 ratio (Group) The target for CET 1 is 16.0 %. The Group s common equity tier 1 ratio was 15.9 % % 17.2 % 16.9 % 16.8 % 15.9 % The reduction in CET 1 was due to strong lending growth in the period. The leverage ratio was 7.2 % Q

43 Changes to capital requirements are expected to leave little impact on the bank Group CET 1 (per cent) exclusive and inclusive the Basel 1-floor 20.0 % 19.0 % 18.0 % 17.0 % 16.0 % 15.0 % 14.0 % 13.0 % 19.00% 16.80% 18.00% 15.90% CET - ex Basel 1 floor CET1 incl Basel 1 floor Management buffer after removal of floor and introduction of SIFI will still be app. 2 % CET1-requirement as SIFI 15,8 % CET1-requirement today 13,8 % The group s CET 1, exclusive the Basel 1-floor, is approximately 2 percentage point above the CET 1 inclusive Basel 1. The Basel 1-floor will be removed, and as a consequence the group CET 1 will increase with app. 2 percentage points. The NFSA delivered 19 October a recommendation to the Ministry of Finance regarding systematically important financial institutions (SIFI). It is expected that SpareBank 1 Østlandet will be defined as SIFI under this regulation with an increased capital requirement of 2 percentage points. These two changes in regulation are expected to have an offsetting effect for SpareBank 1 Østlandet, and the bank considers the SIFIrequirement to have no isolated effect on capitalization, growth plans or dividend policy*. 43 * A SIFI-status could have positive impact on Moody s credit rating, as the current negative outlook is based on the implementation of the BRRD which will trigger a reassessment of Moody s government support assumption. As a SIFI-institution the assumption of government support will be stronger, and could have a positive impact at next rating action by Moody s Investor Service

44 Well positioned to serve a growth region Summary 44

45 Richard Heiberg CEO Tel.: Contact details Geir-Egil Bolstad CFO Tel.: Runar Hauge Investor relations Tel.:

46 Disclaimer This presentation contains forward-looking statements that reflect management s current views with respect to certain future events and potential financial performance. Although SpareBank 1 Østlandet believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of various factors. Important factors that may cause such a difference for SpareBank 1 Østlandet are, but are not limited to: (i) the macroeconomic development, (ii) change in the competitive climate, (iii) change in the regulatory environment and other government actions and (iv) change in interest rate and foreign exchange rate levels. This presentation does not imply that SpareBank 1 Østlandet has undertaken to revise these forward-looking statements, beyond what is required by applicable law or applicable stock exchange regulations if and when circumstances arise that will lead to changes compared to the date when these statements were provided. 46

47 Together to create Proficient Nearby Engaged